Canadian inflation rises slightly in May

Canada’s annual inflation rate rose a touch last month to 0.7 per cent, which was below analyst expectations.
Statistics Canada says higher natural gas prices drove the increase from April’s extremely low rate of 0.4 per cent.

The Bank of Canada’s core index rose 1.1 per cent in the 12 months to May, matching the increase in April and also less than expected.  Experts had predicted an overall annual rate of 0.9 per cent, with core inflation at 1.2 per cent.  Stats Canada reported last month that April’s core inflation rate was 1.1 per cent, near the low end of the Bank of Canada’s target range.

Alberta was the province with the largest hike to inflation at 2.3 per cent.